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(Reuters) - Yahoo Inc YHOO.O said on Tuesday it would buy back up to $3 billion (£2.3 billion) shares through a tender offer to provide liquidity to stockholders looking to sell the stock ahead of the company's pending deal with Verizon Communications Inc (VZ.N).
Shares in Yahoo, which has a 15 percent stake in Chinese e-commerce company Alibaba Group Holding Ltd (BABA.N), were up 2 percent at $50.81.
Yahoo said it would determine a single purchase price after the expiry of the Dutch auction tender offer on June 13 and that the price would not be less than $37 per share.
The company said its directors and executive officers will not tender any shares in the buyback.
Verizon agreed to buy Yahoo's core internet properties last year for $4.83 billion in cash. It lowered the original offer by $350 million in February following two massive cyber attacks at the internet company.
After the Verizon deal, Yahoo will be renamed Altaba, a holding company whose primary assets will be its stake in Alibaba and a 35.5 percent stake in Yahoo Japan (4689.T).
Reporting by Supantha Mukherjee in Bengaluru; Editing by Maju Samuel and Anil D'Silva